Oil and Gas Rotary Rig Counts (US):  The total number of operating rigs in the U.S. the week as of January 29th was 295 oil and 88 gas (totaling 383). In percentage terms, on a month on month (m/m) basis, oil rigs were up 10.5% and gas up 6.0%. On a year on year (y/y) comparison, rigs were down 56.3% for oil and down 21.4% for gas. The combined figure for y/y was -51.4% or -406 rigs.

Figure 1 shows the Baker Hughes U.S. Rotary Rig Counts for oil and gas equipment in the U.S. from 2012 to present. Oil rigs rose have dropped below 1,000 rigs starting in 2015 and landed at 295 this week. Gas rigs bottomed-out at 81 in August 2016 then rose to 88 this week.

For the week ending January 29th, Texas was operating 181 rigs (49.2% of the total), followed by New Mexico with 62 (16.8%), and North Dakota with 12 (3.3%). Louisiana had 32 on-land and 15 off-shore, (8.7%). Oklahoma count was 18, (4.9%). These five states together account for 82.9% of the nation’s rig count.

The energy agency says, “While a successful vaccine rollout should break the link between infection and mobility, even then global oil demand will likely only reach its pre-pandemic run rate by mid-2022.”

At Gerdau we monitor rig counts along with the price of oil and natural gas since it has a major impact on long product sales, to include special bar quality sucker rods for downhole pumping strings, to merchant and structural products for rigs and oilfield equipment.